Option A pays three annual payments starting with $2,000 the first year followed by two...
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Option A pays three annual payments starting with $2,000 the first year followed by two annual payments of $5,000 each. Option B pays two annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? A. Both options are of equal value given that they both provide $12,000 of income. B. Option A has the higher present value C. Option B has a higher present value at time zero than does option A. D. Option B is a perpetuity. E. Option A is an annuity
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